Goldman Sachs has raised its full-year 2026 gross domestic product growth forecast for India to 6.8%, reflecting stronger-than-anticipated economic momentum in the opening quarter of the year.
The investment bank simultaneously trimmed its projections for both inflation and the current account deficit, signaling a more favorable macroeconomic backdrop for the world's fastest-growing major economy.
The upward revision is driven by robust domestic activity recorded in the first quarter of CY26, which exceeded the bank's initial expectations.
Additionally, softer crude oil prices have provided a tailwind, helping to ease import costs and support the broader growth outlook.
The combination of resilient domestic demand and improved external balances has prompted Goldman Sachs to adopt a more optimistic stance on India's near-term trajectory.
The downgrade in inflation estimates suggests that price pressures may be easing, potentially providing the Reserve Bank of India with greater flexibility in its monetary policy stance.